Wales to benefit from new UK Defence Growth Deals

The UK Government has announced a major investment in the defence sector, with Wales one of five locations selected for a Defence Growth Deal, backed by £250 million of government support

Defence Secretary John Healey unveiled the plans at the launch of the new Defence Industrial Strategy (DIS) during a visit to a defence technology firm in Bristol.

The five Defence Growth Deals being established across the UK, will include Scotland, Northern Ireland, South Yorkshire and Plymouth, along with Wales.

The strategy is underpinned by a historic increase in defence spending, set to rise to 2.6% of GDP by 2027, with an ambition to reach 3% in the next Parliament.

Projections suggests demand for up to 50,000 additional defence jobs by 2034/35.

Unmanned aerial vehicles

Wales’s growth deal will focus on strengthening its position in unmanned aerial vehicles (UAVs) and autonomous systems. The nation already hosts innovative companies such as Tekever in Pembrokeshire, testing facilities including the Snowdonia Aerospace Centre, and research hubs like the Welsh Centre for Defence Autonomy.

Mr Healey said: “The Defence Industrial Strategy will make defence an engine for growth in Wales, backing jobs, industry and innovators. Defence Growth Deals offer a new partnership with UK defence to build on industrial and innovation strengths that regions already hold. Together we aim to drive an increase in defence skills and jobs across Wales.”

Chancellor Rachel Reeves added: “This is a plan for good jobs paying decent wages in Wales and beyond. Through Defence Growth Deals we will unleash the power of local economies while securing our country.”

According to Ministry of Defence figures, around 4,000 people in Wales are already employed through defence industry spending. Officials say the new scheme will ensure the sector’s “considerable potential” is fully realised.

‘Boost’

Welsh Secretary Jo Stevens said the investment would deliver “a real boost for Wales’s economy and support highly skilled jobs for years to come”.

Wales’ Cabinet Secretary for Economy Rebecca Evans added that Wales was “well placed to seize the opportunities that lie ahead” in areas ranging from cyber security to land systems.

Detailed plans for the Wales Defence Growth Deal will be developed in the coming months in partnership with devolved government, business and academia. The MoD said areas of focus would include skills, innovation, procurement and investment.